I think UK producers should make more fair trade chocolate however there are reasons for and against. A reason for UK producers to make more fair trade chocolate is that it will reduce pollution in africa. The production of fair trade chocolate will allow for the farmers to have an higher income which will allow them to provide the farming with more environmentally friendly ways to crow crops causing a reduction in pollution of the environment.
Another reason for is that the production of fair trade will reduce unemployment in africa. Due to the increase of income to the farmers, more money is invested into the eduction of the community through displaying transfers. This will therefore provide the children with qualifications and a better eduction therefore they will be able to seek jobs better and have a better chance of employment and workforce for africa.
However the production of fair trade chocolate will increase unemployment in the UK. Due to the higher prices of the chocolate demand will decrease, which as a result businesses won’t be able to meet their employees wages and an outcome of this is that the business will need to cut back on the employees causing further unemployment in the UK.
In conclusion i think the UK should make more fair trade chocolate as this will allow for better development of africa and reduce pollution. The reduction of pollution will further reduce the health problems in the community allowing for a better workforce. However this will cause the price of cocoa in the uk to increase, further causing unemployment and potentially raising tax as more people will claim benefits. Furthermore government could supply subsides to the companies who create fair trade products so they then are able to provide wages to the employees.
question paper (3e)
AQA economics 12 mark for marking
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